1. Field of the Invention
The present invention relates to software-based accounting systems for automobile dealerships, rental car and other industries that regularly purchase gas for multiple vehicles as an operating expense (“fleet companies”). More particularly, the invention relates to a method and software solution for providing automobile dealerships and fleet companies with comprehensive management capabilities throughout the process of authorizing and accounting of gas book expenditures, as well as reconciliation and reporting of said expenditures to eliminate fraud and waste.
2. Description of the Background
High gas prices are having a negative effect on auto dealer profit margins in various ways. For example, many manufacturers no longer reimburse a dealership to deliver a new vehicle with a full tank of gasoline. Whether or not the dealer chooses to absorb this expense, their monthly gasoline costs are substantial. The dealer is still left to pay for gas for customer test drives, rental cars, service vehicles, to pick up or deliver parts, etc. Consequently, larger auto dealership groups are experiencing monthly gas expenses of hundreds of thousands of dollars. This is prompting dealerships to scrupulously guard this aspect of their overhead costs. Unfortunately, there are no established methods or tools to help cut this expense. Indeed, the traditional method of approving and accounting for gas expenses is archaic. The dealership will maintain a “gas book”, e.g., a ledger book of gas expenditures. Whenever a salesman needs to put gas in a car to allow a customer to take a test drive, service personnel need to fill a test a car, runners need to run errands to the motor vehicle department or pick up/drop off parts, or any other employee needs gas for any reason, they are all required to complete a gas Purchase Order request form.
FIG. 1 is an example of a typical gas Purchase Order request form which includes the following fields
DATE:
REQUESTED BY:
CUSTOMER NAME: (the customer prompting the need for gas)
REASON FOR GAS: (test drive, road test, service, etc).
STOCK #/RO#: (the dealer number of the vehicle)
AMOUNT: (authorized amount of Purchase Order)
AUTHORIZED BY: (dealer manager signoff)
DEPARTMENT: (the department requesting the gas)
Larger dealers will also include check boxes to designate the division requesting the gas (Toyota New Sales, Used Sales, Nissan New Sales, Service, Parts, etc.).
The requester will obtain and complete this form, have it approved by a manager, take it to a gas station, and obtain the gas. At the gas station either the requester will use a dealership charge card or the gas station will maintain a running credit account for the dealership. After pumping the gas the requestor is issued a receipt at the gas station, then returns to the dealership and submits the Purchase Order together with the receipt. At the end of the month the dealership will be charged for the gas. Typically, the dealership receives a charge statement reflecting hundreds of such fill-ups, and there is no ready way to correlate the charge statements with the original gas Purchase Order requests and receipts. The disparate data is far too difficult to reconcile, and so typically it is not. The result is a total lack of oversight, and the situation is ripe for fraud. Unscrupulous sales and service personnel piggyback their cigarette and sundry purchases on the gas charge, have their friends meet them at the gas station for a free fill-up, and sometimes use the Purchase Order to fill their own personal car rather than the dealer's. Without any cognizant way of tracking and reconciling these purchases all such attempts at fraud simply fall through the cracks.
In light of the foregoing, it would be of great advantage to create a management system for automobile dealerships and fleet companies that gives far greater management control and accountability over gasoline expenditures, throughout the process of authorizing gas Purchase Orders, executing Purchase Orders, accounting for them and reconciling final charges, as well as reporting on the foregoing to eliminate discrepancies and fraud.